Core Viewpoint - Kuangda Technology is undergoing a significant ownership change, with the controlling shareholder transitioning to Zhuzhou Qichuang, a state-owned enterprise, effective from September 8, 2023 [2][3][6]. Group 1: Ownership Change - On September 5, 2023, a share transfer agreement was signed between Shen Jialiang, the current controlling shareholder, and Zhuzhou Qichuang, where Shen will transfer 411.2 million shares, representing 28% of Kuangda Technology's total equity, at a price of 5.39 CNY per share, totaling 2.22 billion CNY [3][4]. - Following the transaction, Shen Jialiang's shareholding will decrease from 46.63% to 18.63%, while Zhuzhou Qichuang will hold 28% of the shares [5][6]. Group 2: Governance Changes - Shen Jialiang and his associates will relinquish all voting rights associated with their remaining shares post-transfer, ensuring that Zhuzhou Qichuang becomes the new controlling shareholder [6]. - The board of directors of Kuangda Technology will be restructured, with Zhuzhou Qichuang nominating all non-employee representative directors, including the chairman [7]. Group 3: Business Outlook - The ownership change is expected to leverage Zhuzhou Qichuang's resources and management capabilities to enhance Kuangda Technology's profitability and market competitiveness, addressing the company's declining performance in recent years [8][10]. - Kuangda Technology's net profit has been decreasing, with figures of 200 million CNY in 2022, 191 million CNY in 2023, and projected 163 million CNY in 2024, indicating a downward trend [10][11].
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